From the Management

Be the First EPC Contractor to Achieve Net Zero Emission Target and Expand Impact on Sustainability

The world has been greatly impacted by events such as the COVID-19 pandemic, geopolitical conflict and extreme weather conditions in the past year. In addition to joining hands with global partners to fight the pandemic, CTCI has also utilized innovative engineering concepts to create a pilot plan for the net zero turnkey engineering under the international net zero carbon emission target, playing a key role in climate transformation.

Fulfilling Net Zero EPC Mission through ESG Engagement of All Members

CTCI holds fast to the brand spirit of being "The Most Reliable Global Engineering Services Provider," and delivers engineering services and constructions with quality, safety and are friendly to the environment. Meanwhile, we promote "Fulfilling Net Zero EPC (engineering, procurement, construction) Mission through ESG (environmental, social, and corporate governance) Engagement of All Members," to support the United Nations' Sustainable Development Goals (SDGs), an important global topic. Under the leadership of our senior management, we are committed to contributing to SDGs with our four core competencies, i.e. "green engineering," "smart plant," "circular economy," and "Intelligent EPC" (iEPC)."

In order to encourage colleagues to make continuous breakthroughs and innovations in their work, we regularly hold "sustainable practices and net zero emission target improvement meetings" every month. The Group's Executive Committee reviews the sustainability proposals of various units, jointly optimizes and deeply cultivates a sustainability organizational culture, so as to make each colleague realize that doing a good job in daily work is a part of the sustainability efforts to embark on a more stable and reliable journey to sustainability.

As the largest turnkey engineering group in Taiwan with ranking among the world's top 100, CTCI established a "Sustainability and Net Zero Emissions Committee" under the Board of Directors in early 2021. At the same time, it set up an ESG office and a full-time chief sustainability officer to coordinate the group's operations related to sustainability and net zero emission target and strive to achieve various goals. In the past year, in addition to actively promoting "net zero EPC," we put forward feasible schemes for energy conservation, carbon reduction and carbon neutralization services for all stages of EPC turnkey plant construction, so as to help customers move towards the goal of net zero emission. We also joined the "Taiwan Alliance for Net Zero Emission" and the "Taiwan Net Zero Emissions Association," pledging to achieve zero carbon emissions for office premises by 2030 and zero carbon emissions for office and project sites by 2050.

At the midstream of the overall engineering industry chain, we at CTCI not only realize our ESG responsibilities, but also bring global supply chain partners to pursue sustainability and obtain mutual benefits. In addition to combining the needs of customers with our own specialties to create green engineering, we also lead third-party manufacturers to build a complete sustainable value chain and actively promote the supplier support plan. In recent years, we have also expanded the scale of our supplier meeting to improve the sustainability of the overall industrial chain. We stay committed to the cause with our supply chain partners. Due to the COVID-19 pandemic this year, we are holding an online supplier meeting instead to ensure our sustainability efforts remain uninterrupted.

Green Engineering - the Win-win Situation for Both Environment and Economy

In the process of developing business globally, we fully acknowledge the correlation and impact between the development of the engineering industry and climate change, therefore we continue to identify business risks and opportunities through Task Force on Climate-related Financial Disclosures (TCFD), and actively invest in the development of green energy and low-carbon business sector by increasing its percentage of sales revenue of our total revenue. Under the national energy transformation policy of reducing coal-fired power generation, increasing natural gas and promoting green energy, the amount of low-carbon and environmental protection related projects contracted to CTCI increased by 450% from 2015 to 2021, becoming an important driving force for business growth.

Over the years, we are committed to the practice of sustainability through our core competencies by promoting and implementing the three major categories of "Green Engineering," namely Green Technology, Green Contracting, and Green Investment. CTCI has been successful in expanding business in the low-carbon and environmental protection related engineering fields as well as assisting our clients to achieve the goals of energy saving, carbon reduction, and cost saving to create a win-win situation for the economy and the environment with our engineering expertise.

In terms of green technology, while designing and building plants for the project owner, CTCI actively introduces green technology into the whole life cycle of the engineering project and is committed to reducing environmental impacts. In recent years, we have also actively grasped the opportunities for low-carbon and green engineering contracts, including Hsinta and Taichung combined-cycle power plants, the third natural gas receiving terminal, TCC DAKA renewable resources utilization center, the new biodiesel plant construction project in the US, and other projects conducive to sustainable development.

For green investment, CTCI undertakes projects in the form of BOO and BOT. For incinerators, there are Taoyuan bioenergy center and Changhua Industrial Park Sludge Incineration Plant. In the solar photovoltaic field, the cumulative number of cases we have invested has exceeded 126MW. In the field of water resources reuse, we have secured project including Linkou water resources recycling center, Southern Taiwan Science Park wastewater reclamation unit, and Chungli water resources recycling center in Taoyuan.

Committed to Sustainable Education and Expanding Social Influence

In order to drive Taiwan's engineering industry to keep up with the global sustainable development, we organized the first "Taiwan Sustainability Engineering Forum" together with the CTCI Education Foundation, focusing on intelligent green technology and sharing CTCI's performances and experiences on iEPC and Green Engineering in the hope that it would lead the way in the net-zero EPC turnkey plant construction initiative and expand the impact of sustainable projects.

CTCI established the "CTCI Education Foundation (CTCI EF)" in 2016, and continuously planned a total of 17 plans, 72 events, with 10,554 people participating in sustainable education, forums, awards and grants and other activities. Additionally, CTCI launched a digital platform, "CTCI Learning" in 2021, offering hundreds of engineering courses to the public and related academic units for free in order to pass on professional engineering knowledge and experience, with the hope of upgrading the engineering industry in Taiwan.

Conclusion

CTCI provides the most reliable engineering services in the global market and is the only engineering service company in Taiwan that ranks among the top 100 in the world. With regard to efforts in ESG aspects, CTCI also surpasses other international competitors to ranks among the best, and won various domestic and international sustainability awards, including being selected as a constituent stock of DJSI (Dow Jones Sustainability Index) in Emerging Markets category for 7 consecutive years, the only company selected from Taiwan's engineering service industry and ranking second in the global engineering industry, and evaluated as the Silver Class of 2022 Sustainability Yearbook. In the CDP (Carbon Disclosure Project) Climate Change Report, the world's largest carbon disclosure organization, it obtained B-management level for climate change rating and A- leadership level for supply engagement, while achieving BBB level on the MSCI (Morgan Stanley) ESG rating, recognized as the "Best Companies to Work for in Asia 2021" by HR Asia, winning award as among the Top 10 Domestic Companies Sustainability Model Award of Taiwan Corporate Sustainability Awards (TCSA), obtaining the Excellence in Corporate Social Responsibility Award issued by the CommonWealth Magazine, and is ranked among top 5% of the Corporate Governance Evaluation by the Financial Supervisory Commission. With respect to the brand management, CTCI was also selected as one of the "Best Taiwan Global Brands 2020" by Interbrand, an international authoritative brand value survey organization, regarded as a model enterprise for sustainable development. CTCI's outstanding performance enables us to stand on top of the world and rank among the top 100 contractors in the world by Engineering News-Record (ENR), as well as retaining top 1 position in the Contractor Sector in the Top 650 Service Enterprises list carried out by the CommonWealth Magazine, which shows CTCI's capabilities and sustainable growth.

This Sustainability report provides a detailed record of CTCI's concrete achievements in ESG aspects in the past year. I would like to thank the 7,000 colleagues for their dedication and participation, which proves that we are "The Most Reliable Global Engineering Service Provider." Looking to the future, we hope that "where there is CTCI, there is trust!" CTCI will continue to innovate green engineering, create quality and environment-friendly engineering construction for global customers with advanced technology and more diversified services, and work with global partners to implement sustainable and net zero EPC, to give full play to engineering influence and make the world a better place.